TANZANIA – The Board of Directors of the African Development Bank (AfDB) Group have approved a USD 2.5 million grant to prop some 10,000 small-scale fresh produce businesses in Tanzania.
According to their issued press release, the project will focus on five value chains: spices such as cloves, cinnamon, ginger, black pepper, and garlic; tomatoes; peas; green beans; and potatoes.
The funds, approved on 19 October 2023, will come from the Global Agriculture & Food Security Program to support mainly food system service providers in rural areas.
The program aims to increase the production and marketing of horticultural products to mitigate the effects of the Covid-19 pandemic.
It will also promote sustainable and climate-smart agricultural and agro-ecological techniques and management strategies for biodiversity and landscapes.
The scheme will be implemented in four regions including the rural district of Morogoro, Mvomero district in Morogoro region, Wanging’ombe district in Njombe region, and Kaskazini ‘A’ and ‘B’ districts in Unguja, Zanzibar.
The project will also build at least five climate-resilient facilities for sorting, classification, bulk packing, packaging, and storage to reduce post-harvest losses.
A multi-purpose, climate-resilient processing facility for spices will be established in the Morogoro district to process spices for local and regional markets.
Data from Statista reveals that revenue in the Salt & Other Spices market in Tanzania amounted to USD 206.80 million in 2023. The market is expected to grow annually by 8.70% (CAGR 2023-2028).
However, data from another report published in Tanzania’s Institutional repository reveal that despite spice being a high value crop in Tanzania which contributes to 27% of the GDP, smallholder farmers have failed to benefit from selling the crop direct to retailers or consumers.
“Most spice farmers trade in unorganized spice businesses, have limited market access of their products, and unsatisfactory market participation,” reads the report. “They thus trade their spices through channels like middlemen (intermediaries).”
In another Mordor Intelligence report, the Tanzania Fruits and Vegetables Market size is expected to grow from USD 2.04 billion in 2023 to USD 2.80 billion by 2028, at a CAGR of 6.50% during the forecast period (2023-2028).
The growing demand for derived products, such as fruit juices and jams, and consumer awareness of healthier alternatives, such as fruits and vegetables, are some factors driving the market growth.
Furthermore, According to Food and Agriculture Organization (FAO) stat data, vegetable production in Tanzania was 2.77 million metric tons in 2020, though the area harvest showed a slight drop in recent years.
The report further reveals that international buyers are increasingly looking out for Tanzanian-grown crops, especially avocados, raspberries, lime, and other high-value vegetables.
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